22250.  (a) A tax preparer shall maintain a bond issued by a surety
company admitted to do business in this state for each individual
preparing tax returns for another person.  The principal sum of the
bond shall be five thousand dollars ($5,000).  A tax preparer subject
to this section shall provide to the surety company proof that the
individual is at least 18 years of age before a surety bond may be
issued.
   (b) The bond required by this section shall be in favor of, and
payable to, the people of the State of California and shall be for
the benefit of any person or persons damaged by any fraud,
dishonesty, misstatement, misrepresentation, deceit, or any unlawful
acts or omissions by the tax preparer, or the tax preparers employed
or associated with it to provide tax preparation services.
   (c) The tax preparer filing the bond shall identify all tax
preparers employed or associated with the tax preparer and shall
provide for each employee or associate the evidence required by
subdivision (a) to the surety company.  A tax preparer employed or
associated with a tax preparer shall be covered by the bond of the
tax preparer with which he or she is employed or associated.
However, in no event shall the total bond required for any single tax
preparer and the tax preparers employed or associated with it be
required to exceed one hundred twenty-five thousand dollars
($125,000).  The aggregate liability of the surety to any and all
persons regardless of the number of claims against the bond or the
number of years the bond remains in force shall not exceed five
thousand dollars ($5,000) for any one tax preparer.  Any revision of
the bond amount shall not be cumulative.  The liability of the surety
on the bond shall not include payment of any civil penalties, fines,
attorneys' fees, or any other cost provided by statute or
regulation.
   (d) The tax preparer shall file an amendment to the bond within 30
days of a change in information contained in the bond, including a
change in the tax preparers employed or associated with the tax
preparer.
   (e) (1) A tax preparer may not conduct business without having a
current surety bond in the amount prescribed by this section.
   (2) Thirty days prior to the cancellation or termination of any
surety bond required by this section, the surety shall send a written
notice of that cancellation or termination to the tax preparer and
the California Tax Education Council, identifying the bond and the
date of cancellation or termination.
   (3) If a tax preparer fails to obtain a new bond by the effective
date of the cancellation or termination of the former bond, the tax
preparer shall cease to conduct business until that time as a new
surety bond is obtained.
   (f) Notwithstanding Section 995.710 of the Code of Civil
Procedure, a tax preparer may not make a deposit in lieu of bond.
   (g) A tax preparer shall furnish evidence of the bond required by
this section upon the request of any state, federal agency or any law
enforcement agency or the California Tax Education Council.



22251.  For the purposes of this chapter, the following words have
the following meanings:
   (a) (1) Except as otherwise provided in paragraph (2), "tax
preparer" includes:
   (A) A person who, for a fee or for other consideration, assists
with or prepares tax returns for another person or who assumes final
responsibility for completed work on a return on which preliminary
work has been done by another person, or who holds himself or herself
out as offering those services.  A person engaged in that activity
shall be deemed to be a separate person for the purposes of this
chapter, irrespective of affiliation with, or employment by, another
tax preparer.
   (B) A corporation, partnership, association, or other entity that
has associated with it persons not exempted under Section 22258,
which persons shall have as part of their responsibilities the
preparation of data and ultimate signatory authority on tax returns
or that holds itself out as offering those services or having that
authority.
   (2) Notwithstanding paragraph (1), "tax preparer" does not include
an employee who, as part of the regular clerical duties of his or
her employment, prepares his or her employer's income, sales, or
payroll tax returns.
   (b) "Tax return" means a return, declaration, statement, refund
claim, or other document required to be made or filed in connection
with state or federal income taxes or state bank and corporation
franchise taxes.
   (c) An "approved curriculum provider," for purposes of basic
instruction as described in subdivision (a) of Section 22255, and
continuing education as described in subdivision (b) of Section
22255, is one who has been approved by the council as defined in
subdivision (d).  A curriculum provider who is approved by the tax
education council is exempt from Chapter 7 (commencing with Section
94700) of Part 59 of Division 10 of the Education Code.
   (d) "Council" means the California Tax Education Council that is a
single organization made up of not more than one representative from
each professional society, association, or other entity operating as
a California nonprofit corporation  that chooses to participate in
the council and that represents tax preparers, enrolled agents,
attorneys, or certified public accountants with a membership of at
least 200 for the last three years, and not more than one
representative from each for-profit tax preparation corporation  that
chooses to participate in the council and that has at least 200
employees and has been operating in California for the last three
years. The council shall establish a process by which two individuals
who are tax preparers pursuant to Section 22255 are appointed to the
council with full voting privileges to serve terms as determined by
the council, with their initial terms being served on a staggered
basis.  A person exempt from the requirements of this chapter
pursuant to Section 22258 is not eligible for appointment to the
council, other than an employee of an individual in an exempt
category.



22252.  Prior to rendering any tax preparation services, a tax
preparer shall provide the customer in writing with the tax preparer'
s name, address, telephone number, and evidence of compliance with
the bonding requirement of Section 22250, including the bond number,
if any.



22252.5.  The Legislature finds and declares that it is important to
inform taxpayers that they may make voluntary contributions to
certain funds or programs, as provided on the state income tax
return.  The Legislature further finds and declares that many
taxpayers remain unaware of the voluntary contribution check-offs on
the state income tax return.  Therefore, it is the intent of the
Legislature to encourage all persons who prepare state income tax
returns, including tax preparers, to inform their clients in writing,
prior to the completion of any state income tax return, that they
may make a contribution to any voluntary contribution check-off on
the state income tax return if they so choose.



22253.  (a) It is a violation of this chapter for a tax preparer to
do any of the following:
   (1) Make, or authorize the making of, any statement or
representation, oral or written or recorded by any means, which is
intended to induce persons to use the tax preparation service of the
tax preparer, which statement or representation is fraudulent,
untrue, or misleading.
   (2) Obtain the signature of a customer to a tax return or
authorizing document which contains blank spaces to be filled in
after it has been signed.
   (3) Fail or refuse to give a customer, for his or her own records,
a copy of any document requiring the customer's signature, within a
reasonable time after the customer signs the document.
   (4) Fail to maintain a copy of any tax return prepared for a
customer for four years from the date of completion or the due date
of the return, whichever is later.
   (5) Engage in advertising practices which are fraudulent, untrue,
or misleading, including, but not limited to, assertions that the
bond required by Section 22250 in any way implies licensure or
endorsement of a tax preparer by the State of California.
   (6) Violate Section 17530.5 or 17530.6.
   (7) Violate Section 7216 of Title 26 of the United States Code.
   (8) Fail to sign a customer's tax return when payment for services
rendered has been made.
   (9) Fail to return, upon the demand by or on behalf of a customer,
records or other data provided to the tax preparer by the customer.

   (10) Knowingly give false or misleading information to the
consumer pursuant to Section 22252, or give false or misleading
information to the surety company pursuant to subdivision (a) of
Section 22250, or give false or misleading information to the
California Tax Education Council pursuant to Section 22255.
   (b) Each violation of this section constitutes a separate offense.



22254.  A provider of tax preparer education for tax preparers shall
meet standards and procedures as approved by the council.  The
council shall either approve or decline to approve providers of tax
preparer education within 120 days of receiving a request for
approval.  If approval is not declined within 120 days, the provider
shall be deemed approved.  A listing of those providers approved by
the council shall be made available to tax preparers upon request.



22255.  (a) The council shall issue a "certificate of completion" to
the tax preparer when the tax preparer demonstrates that he or she
has (1) completed not less than 60 hours of instruction in basic
personal income tax law, theory, and practice by an approved
curriculum provider within the previous 18 months; and (2) provides
evidence of compliance with the bonding requirement of Section 22250,
including the name of the surety company, the bond number, and the
bond expiration date.  Of the required 60 hours, 45 hours shall be
concerned with federal tax curriculum and 15 hours shall be concerned
with state tax curriculum.
   (b) A tax preparer shall complete on an annual basis not less than
20 hours of continuing education, including 12 hours in federal
taxation, four hours in California taxation and an additional four
hours in either federal or California taxation from an approved
curriculum provider.  The council shall issue annually a "statement
of compliance" when the tax preparer demonstrates that he or she has
(1) completed the required 20 hours of continuing education, and (2)
provides evidence of compliance with the bonding requirement of
Section 22250, including the name of the surety company, the bond
number, and the bond expiration date.
   (c) An individual who possesses a minimum of two recent years
experience in the preparation of personal income tax returns may
petition the council to review the experience and determine if it is
the equivalent of the required qualifying education.  The council may
provide that individual with a "certificate of completion" if it is
determined that the experience is the equivalent of the required
hours.  Tax preparation performed in situations that violate this
chapter, by an individual who is neither registered nor exempted, may
not be used toward the qualifying experience needed for registration
as a tax preparer.


22256.  (a) The superior court in and for the county in which any
person acts as a tax preparer in violation of the provisions of this
chapter, may, upon a petition by any person, issue an injunction or
other appropriate order restraining the conduct.  The proceedings
under this paragraph shall be governed by Chapter 3 (commencing with
Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.
   (b) A person who violates a provision of this chapter is guilty of
a misdemeanor, which offense is punishable by a fine not exceeding
one thousand dollars ($1,000), or by imprisonment in a county jail
for not more than one year, or by both.



22257.  (a) If a tax preparer fails to perform a duty specifically
imposed upon him or her pursuant to this chapter, any person may
maintain an action for enforcement of those duties or to recover a
civil penalty in the amount of one thousand dollars ($1,000), or for
both enforcement and recovery.
   (b) In an action to enforce these duties or to recover civil
penalties, or for both enforcement and recovery, the prevailing
plaintiff shall be entitled to reasonable attorney's fees and costs,
in addition to the civil penalties provided under subdivision (a).




22258.  The following persons are exempt from the requirements of
this title:
   (a) A person with a current and valid license issued by the
California Board of Accountancy and his or her employees while
functioning within the scope of their employment.
   (b) A person who is an active member of the State Bar of
California and his or her employees while functioning within the
scope of their employment.
   (c) An employee of any trust company or trust business as defined
in Chapter 1 (commencing with Section 99) of Division 1 of the
Financial Code while functioning within the scope of his or her
employment.
   (d) A financial institution regulated by the state or federal
government, and employees thereof, insofar as the activities of the
employees are related to their employment and the activities of the
financial institution with respect to tax preparation are subject to
federal or state examination or oversight.
   (e) A person who is enrolled to practice before the Internal
Revenue Service pursuant to Subpart A (commencing with Section 10.1)
of Part 10 of Title 31 of the Code of Federal Regulations, and his or
her employees while functioning within the scope of his or her
employment.



22259.  This chapter shall be subject to the review required by
Division 1.2 (commencing with Section 473).
   This chapter shall become inoperative on July 1, 2008, and, as of
January 1, 2009, is repealed, unless a later enacted statute, which
becomes effective on or before January 1, 2009, deletes or extends
that date on which it becomes inoperative and is repealed.